The revelation through the ‘Panama Papers’ exposed the shocking and vile activities of the global shadow finance community. Press and observers believe it would implicate several political figures in the world.
The first casualty is possible Iceland’s Prime Minister Sigmundur David Gunnlaugsson.
The centre-right Prime Minister had asked to dissolve parliament and called for early elections on Tuesday.
Iceland’s five-year president Olafur Ragnar Grimsson had denied the request and opted that leaders of other political parties guarantee a solution that was in the national interest.
About 320,000, the total of Iceland’s population, were completely shocked by the Prime Minister’s crimes including the ownership of an offshore company controlled by his wife.
About 22,000 of Iceland’s populace had come out in protest in Rekjavik’s streets on Monday. This is one of the historically-largest protests seen in Iceland.
Gunnlagsson said in social media that he is willing to break up parliament and call for early elections. He also insisted he and his wife had not done anything illegal. He iterated his accomplishments for Iceland.
According to observers in Iceland, Prime Minister Gunnlagsson is unlikely to survive his political career with the scandal.
The facts are over 90% of claims made were made by claims firms and the other 10% only probably did it cause they heard about it via claims companies one way or the other. The truth is like it or not the British economy is booming due to the 22 billion that’s been pumped into the economy in the past four years which without Claims Company would no doubt be paid as big bankers bonuses. Claims companies also charge a fee which they use to pay employees which then contribute to the economy.
The Financial Conduct Authority (FCA) may put a time limit on Payment Protection Insurance (PPI) claims, which consumers have been making since January 2011.
Over the past four years, banks have already compensated customers who were miss-sold PPI with a staggering £18bn. However, thousands of PPI complaints are still being made each week and many individuals across the country have yet to claim their insurance refund. In December 2014, £339.1m was paid out, proving that a huge number of people are still coming forward and being compensated.
Now increasing pressure from the British Bankers Association to put a time limit on PPI claims, means the Financial Conduct Authority could set a ‘claim by’ date. It’s important to remember that in many cases, people were not even aware they had been sold PPI. It doesn’t cost anything to check whether you were miss-sold this useless insurance by your bank. It’s worth looking into and it could net you a very welcome cheque.
CBI Director General John Cridland states that the money spent for compensation is much more useful if it was put to more economic use. Cridland and the banks criticized claims management companies (CMCs) for taking advantage of the situation and earning profits, with banks stating that the claims of CMCs cost them more than what they expected.
All the best PPI companies have a ‘no win no fee’ policy so to ensure you receive the best company to recover be sure to research thoroughly before committing.
Economists said that payment protection insurance refunds actually help the economy as local markets see most activity in the last few months. The refunds were a windfall and economists see it as having an effect better than quantitative easing.
The Office of National Statistics (ONS) also mentioned a 13.4% increase in the number of car owners in the United Kingdom. They said that 27,000 more car registrations were noted in the previous six months of 2013, supporting their theory that PPI had held back consumer spending.
Many consumers were spending their refunds using the money as downpayment for new vehicles, furniture and appliances. Some used the money to repair utility lines and other home improvement projects. Some people re-invested their money in the market for circulation and growth.
PPI is an insurance product that costs around £3000-3500 and is supposed to protect your repayments for your financing if you get sick or become unemployed. However, bank representatives even mis sold the insurance to ineligible consumers. If you think you were mis sold PPI, you could call on a claims management company to ensure you get your complete refunds.
However, the total PPI compensation package had now reached £17 billion in total as Lloyds, RBS and HSBC added further to their PPI redress packages. Experts estimate that the refund bill could reach more than £20 billion by the end of the year.
There were a number of 140,000 customers of the Lloyds Banking Group who were affected with the delays in PPI claims for compensation. The bank has already apologized to their valued customers regarding the said delay. It is not easy for the bank’s customer to experience delay in PPI payments. There must be something wrong with the bank’s standard on the release of PPI compensation to the customers. The Financial Services Authority (FSA) was unhappy about how the bank handled the customer’s PPI payments causing all the customers to wait for almost six long months for their PPI compensation.
The bank has been given a fine amounting to £4.3 Million because of the tons of complaints they have been receiving from their customers. The concerned regulators released a statement saying that the banks failed in establishing a trusted process in preparing the compensation addressed to the customers who complained from the banks like Lloyds, Bank of Scotland, and TSB. Lloyds bank was said to have save an amount of £5 billion that is allotted to compensate the customers who purchased products that weren’t useful.
The regulators have given the bank a fine since they should pay for their delays. The bank already said that they are following a target to pay their customers after each would be receiving letters from the bank. The target would last for 28 days. The bank has already sent out decision letters to a number of 582,206 customers in the month of May 2011 until March of last year but according FSA the bank has let a number of 87,000 customers wait not for 28 days but it reached until forty-five days. The complaints that the bank has been receiving is a result of their own failure.
To find out more about PPI compensation see PPIClaimCo.com.
CBI Director General John Cridland expressed his concerns regarding mis sold PPI and the amount of money the banks are losing due to PPI claims. He states that the money spent for compensation is much more useful if it was put to more economic use. Cridland proposed for a time limit for customers to make their insurance claims.
Cridland and the banks criticized claims management companies (CMCs) for taking advantage of the situation and earning profits, with banks stating that the claims of CMCs cost them more than what they expected. CMCs were responsible for the skyrocketing thousands of claims each month.
However, CMCs such as Mis Sold PPI Claims Co, state that they are only “helping hands” that enable customers to have a say in a situation such as PPI claiming. They help people who are mostly busy working or have a hectic schedule. They say that they do advertise, but it doesn’t mean they can force people to work with them.
CMCs charge customers for their services under the condition that the CMC’s can deliver satisfactory results to their customers, namely the recompense deserved.
The Financial Ombusman regarded that CMCs have the same chance as customers in reclaiming their repayments for PPI, but also regarded CMCs as “picking up on the responsibility that banks had”. Banks were previously asked by the Financial Services Authority to call upon all customers mis sold PPI to make a claim and claims management companies are doing the same, but not just for a limited period of time.